Sparton announces $13.1 million loss

Jackson-based Sparton Corp. announced its second straight year of losses Tuesday, totaling more than $20 million.

The company announced a net loss of $13.1 million for the fiscal year ending June 30. The company reported a net loss of $7.7 million last year.

Sparton shares ended the trading day at $3.09, down 60 cents, their lowest point in eight years.

"This past year has been very challenging," Richard Langley, Sparton's interim president and chief executive officer, said in a statement. "While our results overall are certainly not acceptable, there were a number of contributing factors, some positive and some negative, reflected in these results."

Some factors indicated by the company include a 19 percent drop in industrial sales and unexpected setbacks on new business.

"As the delay in new business starts continued, we undertook a review of our near-term expectations and approved several significant actions," Langley said.

It decided to close its New Mexico plant, even though it was its newest facility, because the company said it would cost too much to upgrade it to meet aerospace manufacturing standards.

The company also hired an outside consultant to address inefficiencies in its manufacturing and purchasing processes.

Sales for the year increased by close to $30 million, totaling more than $229 million. The company's six largest customers, including the government, account for 75 percent of its sales.

The company's statement, said it expects another challenging year in fiscal 2009.

"Improvement in operating cash flow is one of our top priorities in fiscal 2009," Langley said. "The primary focus is on reducing inventories and improving quality and performance efficiencies throughout our business operations."

Also in the statement, the company said it continues a search  both internally and externally  for a new president and CEO following the retirement in March of David Hockenbrocht.